Direct deposit is a modern marvel in the workplace. Employees are able to receive their entire paycheck without having to ever visit the bank or collect money from their employer. It’s so convenient and popular that 82 percent of US workers got their pay this way in 2016!
While it’s obviously a benefit for your employees to wake up with money in their bank accounts, there are also some substantial benefits to you as an employer. Read on to see the benefits of direct deposit for your business, and why you should switch from a paper check system to a modern digital one!
Four Benefits of Direct Deposit Payroll
Running payroll through direct deposit means that you will only have to get new employees into the system once. After that, so long as there is enough money in your business’ bank account, direct deposit will handle the rest for you, until salaries change or employees leave.
One of the best upsides of direct deposit is that payroll will run even if you don’t have people in the office. This can help avoid hiccups that leave your employees unhappy. It also means that less time will have to be dedicated to payroll – since you can run payroll online and ahead of time. Once automation is in place, you will soon forget that your weekly or monthly automated payments and deposits are in place — which is always something nice for individuals, businesses, and organizations if all sizes.
Another reason to consider switching to a direct deposit system instead of a paper check system is that it saves you money. Writing checks takes a lot of time and material – even the checks themselves cost money! You also won’t have to worry about the costs associated with issuing a new check if one goes missing. Thanks to the power of the internet, it seems like financial solutions and payment programs just keep getting more affordable.
Direct deposit also makes things easier for your finance staff, since your entire payroll will be deposited at once. This helps avoid accounting errors that can occur when checks are cashed at different times. It also helps with making sure bank accounts are funded more often than not… as no one likes to see overdraft fees in their accounts.
Of course, if an employee’s paystub, you can always use a tool like ThePayStubs to print one out quickly. This can be the case with some landlords or for tax and legal purposes, for instance.
Finally, the last thing that you should consider about the direct deposit is its security benefits. While bank transfers save you money on lost checks, not having checks to lose in the first place prevents against fraud. It also means that your employees are much less likely to have their identities stolen – at least from a paycheck. This is also why so many businesses and brands also use Paypal and other third-party solutions for faster and more secure payments online.
Direct Deposit Is the Way of the Future
All of the benefits of direct deposit systems make it easy to see why a majority of American businesses are on board. Why bother with something as insecure and easy to lose as a check for something as important as wages? Save yourself the headaches and automate the process, and then focus on what really matters – growing your business.
For more information on running a small business and how technology can help you, check out the Technology section of our website!